2017 Annual Report Dubai Demand Side Management Strategy

Transcription

1 Annual Report Dubai Demand Side Management Strategy For an Efficient Future

2 Limited Distribution, Issue Publisher: Dubai Supreme Council of Energy Editorial Service: TAQATI

3 We recognise that preserving our energy resources will be one of the greatest challenges in our drive towards sustainable development. This, however, will not materialise unless the different facets of our society adopt energy conservation principles in their core values. The future generations will be the chief beneficiary of our achievements and the best judge of what we accomplish in this field. HH Sheikh Mohammed bin Rashid Al Maktoum Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

4 History bears witness to our Founding Fathers foresight and wisdom in the decisions they ve made, decisions whose benefits we continue to enjoy today. Looking to the future is our leadership s permanent policy; they spare no effort in building a bright tomorrow for the nation s coming generations. HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum Crown Prince of Dubai and Chairman of the Executive Council

5 There has been much progress to date in the move towards a green economy, where economic growth and environmental responsibility are given equal importance in the development of a sustainable future. Indeed, the green economy is an engine of growth, providing opportunities for both the public and private sector. HH Sheikh Ahmed bin Saeed Al Maktoum Chairman of the Dubai Supreme Council of Energy

6 Launch of the Demand Side Management Annual Report by His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Supreme Council of Energy (DSCE); His Excellency Saeed Mohammed Al Tayer, Vice Chairman of DSCE; His Excellency Ahmad Buti Al Muhairbi, Secretary General of DSCE; and Members of the Board

7 MESSAGE FROM: VICE CHAIRMAN OF DUBAI SUPREME COUNCIL OF ENERGY Dear valued stakeholders, I am pleased to present the fourth annual report on the Demand Side Management Strategy (DSM) of Dubai, which highlights the significant efforts taken by DSM programme owners and stakeholders in, in collaboration with the Supreme Council of Energy and TAQATI, delivering savings that surpassed the set targets. In Dubai, we work to achieve the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to instil sustainability, which is the basis for our transition towards a green economy. We have adopted a holistic approach for the energy sector, covering issues such as energy security, energy efficiency, energy sustainability and its rational use. This will transform Dubai into an international hub for clean energy and green economy, becoming the city with the lowest carbon footprint in the world. Energy demand side management is one of the main challenges of the 21st century for the world community, and the high global demand for energy and water highlights the urgent need to rationalise consumption and enhance demand management to ensure environmental sustainability and reduce waste of resources. The Demand Side Management Strategy aims to reduce electricity and water demand by 30% by It focuses on reducing energy demand and adopting best international techniques and practices to conserve the resources. We are collaborating with key stakeholders in the public and private sectors to achieve our ambitious target of 30% energy savings by In, we managed to save a total of 3.3TWh of electricity and 4.9 billion imperial gallons of water. These savings correspond to a reduction of 9% and 11% per capita in electricity and water consumption respectively since the commencement of the DSM strategy in This corresponds to approximately AED1.1 billion of avoided capital investments for new generation capacity and AED3.1 billion of avoided operational costs. In the coming years, we look forward to achieving more results through our initiatives and programmes to build capacity and sustain the growth of the energy efficiency market in Dubai. I thank our valued stakeholders for their contributions, and look forward to further collaborating for a brighter future, for generations to come. HE Saeed Mohammed Al Tayer Vice Chairman of the Dubai Supreme Council of Energy 7

8 MESSAGE FROM: SECRETARY GENERAL OF DUBAI SUPREME COUNCIL OF ENERGY The Demand Side Management (DSM) Strategy, the Dubai Supreme Council of Energy (DSCE) aims to make Dubai a role model in energy efficiency by implementing cost effective electricity and water demand saving programmes, and developing a green service market. With robust results from the DSM Strategy so far, we are pleased to report that Dubai is continuing to move in the right direction. This could not have happened without the dedication and collaboration of a large number of government entities who are governed by visionary leaders. They are supported by a dedicated DSM programme management office, TAQATI, which focuses on supporting and helping them to achieve their targets and set up the enablers, such as awareness and capacity building, for a green service market. The results for show a strong commitment to this strategy, with sustained improvements from all eight DSM programmes. The savings continue to be above the set targets, with 7.6% savings in electricity and 4.3% savings in water compared to the business as usual scenario. Looking at the near future, with progressively higher saving targets, we understand that greater commitment and increased efforts are critical to sustain our success. General awareness has to improve, capacity building and specialised education will have to become more prevalent. We also need innovative financing mechanisms to meet the next stage of our goals. We look forward to continuing the upward journey and are fully confident in our stakeholders commitment and ability to scale up their activities. As the custodian of the DSM Strategy, the Dubai Supreme Council of Energy (DSCE) will continue to provide institutional guidance and endorsement, while TAQATI will extend dedicated implementation support. HE Ahmad Buti Al Muhairbi Secretary General of the Dubai Supreme Council of Energy 8

9 TABLE OF CONTENTS 1. Executive Summary Objectives and Scope of this Report Context and Overview of the Demand Side Management (DSM) Strategy Policy Context 3.2 Demand Side Management Strategy, Roadmap and Targets 3.3 Institutional Framework 4. DSM Strategy Achievements Overview of the Main Achievements to Date 4.2 Overall Performance in 4.3 Monetising Demand Side Management Savings 5. Deep Dive on DSM Programmes and Initiatives DSM Programme 1: Building Regulations 5.2 DSM Programme 2: Building Retrofits 5.3 DSM Programme 3: District Cooling 5.4 DSM Programme 4: Standards and Labels for Appliances and Equipment 5.5 DSM Programme 5: Water Reuse and Efficient Irrigation 5.6 DSM Programme 6: Outdoor Lighting 5.7 DSM Programme 7: Tariff Rates 5.8 DSM Programme 8: Shams Dubai 5.9 DSM Special Project: Energy Intensity Mapping 5.10 DSM Special Project: Green Public Procurement for Energy and Water Efficiency 5.11 DSM Awareness Improvement 6. Future Outlook and Key Priorities for the Next Three Years Acknowledgements List of Abbreviations List of Exhibits Contact Information 88 9

10 1 EXECUTIVE SUMMARY 10

11 EXECUTIVE SUMMARY This report, in its fourth year of publication, presents the progress and performance of the Dubai Demand Side Management (DSM) Strategy for. The strategy comprises eight main programmes addressing different aspects of demand for electricity and water in Dubai. Each programme has a responsible government entity for execution, a programme owner, and is supported by a dedicated programme management office, TAQATI, under the supervision of the Dubai Supreme Council of Energy (DSCE). The end goal of the strategy is to deliver 30% by 2030 of sustainable yearly savings in electricity and water compared to the business as usual consumption. By the end of, the DSM Strategy implementation resulted in 3.3 TWh annual electricity savings and 4.9 BIG annual water savings, corresponding to 7.6% and 4.3% of the baseline consumption, respectively. This marks a surplus versus the target savings, which are 2.9 TWh for electricity and 4.8 BIG for water, and a substantial growth from 2016 actual savings of +18% for electricity and +31% for water, as most programmes are rapidly expanding. The avoided cost in generation capacity and natural gas consumption is estimated to be approximately AED 4.2 billion since the strategy initiation in These important achievements come as a combination of efforts from all programme owners, who are committed to yearly targets and a roadmap to 2030, and for whom the DSM Strategy is increasingly becoming part of their core activities. AMONG THE KEY ACHIEVEMENTS OF : The Dubai Green Building Regulations and Specifications (DGBRS) 2010 have reached full compliance in new buildings permitted by Dubai Municipality. Substantial retrofit projects in Jebel Ali Free Zone Authority (JAFZA) and Mohammed Bin Rashid Housing Establishment have been completed and new major projects were initiated. Efficiency standards for indoor water fixtures have been enforced by Emirates Authority For Standardization and Metrology (ESMA). Shams Dubai Programme has experienced considerable growth thanks to measures taken and rapidly improving capabilities. The first phase of the Energy Intensity Mapping is completed with the upload of data for 5,000 buildings in Dubai. As part of the Green Public Procurement for Energy and Water Efficiency initiative, the indoor lighting criteria has been successfully tested by DSCE member entities and criteria for the other most energy consuming products have been developed. The DSM Integrated Awareness Strategy 2022 was developed, and collaborative awareness initiatives were initiated amongst the programme owners. The Integrated Outreach and Awareness Committee was launched to coordinate and streamline DSM awareness efforts and the Home Energy Advice Programme pilot was successfully carried out. The coming years will see a steep increase in saving targets, and hence several programmes are expected to step up their measures. This would involve, for example, updates to the green building regulations and expansion of their application to free zones, upgrades to the efficiency standards of some appliances, scale up of retrofit activities, increased penetration of district cooling, broader implementation of LED or other efficient technology in street lights, and adoption of solar photovoltaic (PV) for rooftops. Specific work will be dedicated to unlock synergies and enable growth of some DSM programmes relying on multiple stakeholders for an effective implementation, such as District Cooling and Water Reuse and Efficient Irrigation. In parallel, efforts will be deployed to build financing enablers and enhance the existing systems and processes for monitoring and evaluating DSM energy savings. In the current economy, the DSM Strategy plays an important part in the sustainable growth of Dubai. It is generating real savings, improving awareness, building DSM capabilities in Dubai, and developing the energy efficiency market. The ongoing and anticipated support received from the leaders and institutions means the DSM Strategy will achieve its long term goals. 11

12 2 OBJECTIVES AND SCOPE OF THIS REPORT 12

13 The objective of this report is to present the progress and performance of the Dubai Demand Side Management (DSM) Strategy: a strategy spearheaded by the Dubai Supreme Council of Energy (DSCE), implemented by key government entities in Dubai, and supported by TAQATI. The report comprises a description of the DSM Strategy, a presentation of the achievements in, and an outline of the priorities to be pursued in the next three years. It outlines achievements in electricity and water savings attained from implementing DSM programmes in comparison with preset target savings, along with other performance indicators, such as changes in per capita consumption and results of a Total Resource Cost Test. OBJECTIVES AND SCOPE OF THIS REPORT Data presented in this document are the result of a reporting system that DSCE maintains through TAQATI in collaboration with the DSM programme owners: Dubai Electricity and Water Authority, Dubai Municipality, Roads and Transport Authority, the Regulatory and Supervisory Bureau for Electricity and Water in Dubai, Etihad Energy Services and Emirates Authority for Standardization and Metrology. 13

14 3 CONTEXT AND OVERVIEW OF THE DSM STRATEGY 30% BY EN E EFF GRY LABICIEN EL CY 4 14

15 3.1 POLICY CONTEXT THE DSM STRATEGY The Demand Side Management (DSM) Strategy is part of the Dubai Integrated Energy Strategy (DIES) 2030, whose main goals are to secure Dubai s uninterrupted energy supply and moderate its growing electricity and water demand (see exhibit 1). IS PART OF DIES 2030 AND IS ALIGNED WITH UAE AND DUBAI POLICY AGENDAS At the same time, DSM supports the growth of a green economy and hence the creation of green jobs, it aligns with smart city objectives through the employment of smart technology, and contributes to a safer environment by reducing carbon emissions. The convergence of such important goals in the DSM Strategy has integrated well with the agendas of Dubai and the UAE (see exhibit 2). Dubai Plan 2021 Reinforcing Dubai s positioning as a global center and destination Supply Side Targets (Energy Mix) Solar and other clean energy source: 25 % by 2030 Electricity consumption savings: DIES % by 2030 vs. BAU Water consumption savings: 30% by 2030 vs. BAU Exhibit 1: Demand Side Management as part of the Dubai Integrated Energy Strategy 2030 National Agenda 2021 Vision Shaping the next years of UAE development Green Growth Strategy Promoting sustainable growth DUBAI AGENDA Demand Side Management Targets NATIONAL AGENDA CONTEXT AND OVERVIEW OF THE DSM STRATEGY Optimising energy demand is a strategic priority for Dubai given its dependency on energy imports and economic growth. It moderates the need for next generation capacity and frees up resources for strategic investments. EXPO 2020 Supporting a new wave of growth DIES 2030 & DSM Strategy 2030 Making Dubai a role model in energy efficiency and security Smart Dubai Making Dubai the smartest city in the world Exhibit 2: Dubai Integrated Energy Strategy and Demand Side Management in the context of the policy agendas of the emirate and the nation 15

16 3.2 DEMAND SIDE MANAGEMENT STRATEGY, ROADMAP AND TARGETS DSM Strategy The DSM Strategy comprises eight programmes, designed to address different aspects of electricity and water consumption sources in Dubai. Programmes are supported by a series of implementation mechanisms, mainly capability building, awareness improvement, measurement and verification, policies and regulations, and financing (see exhibit 3 and 4). CONTEXT AND OVERVIEW OF THE DSM STRATEGY DSM Goal Dubai to become a role model in energy efficiency by implementing cost-effective electricity and water demand saving measures and developing a green service market 8 DSM Programmes.1. Building Regulations.2. Building Retrofits.3. District Cooling.4. Standards and Labels for Appliances and Equipment.5. Water Reuse and Efficient Irrigation.6. Outdoor Lighting.7. Tariff Rates.8. Shams Dubai 8 DSM Implementation Mechanisms Institutional setting and capability building Governing by example Information systems Financing mechanisms Policies and regulations Technologies and studies Awareness Improvement Measurement and verification Exhibit 3: Architecture of the Demand Side Management Strategy with its eight programmes and eight implementation mechanisms 16

17 Programme 1 Building Regulations 2 Building Retrofits Scope Implement Dubai Municipality s (DM) existing green building regulations in new buildings and update the regulations to double electricity and water savings. Retrofit the existing building stock in Dubai with electricity and water efficiency measures, in the aim of reducing the energy intensity of up to 30,000 buildings in Dubai by CONTEXT AND OVERVIEW OF THE DSM STRATEGY Start from government buildings, followed by commercial and residential buildings. 3 District Cooling Increase the penetration of efficient district cooling (DC) to 40% of the total cooling capacity of Dubai in 2030 by regulating the DC market. Develop, implement and regularly update electricity and water efficiency standards 4 Standards and Labels for and comparative labels for high consuming appliances and equipment used in the UAE. Appliances and Equipment Promote the adoption of higher efficiency products. 5 Water Reuse and Efficient Irrigation Irrigate all public areas with treated sewage effluent (TSE), implement efficiency measures in Dubai s green areas and use excess capacity of TSE for other uses (e.g., private irrigation and DC). 6 Outdoor Lighting Adopt high-efficiency technology for outdoor lighting in roads and other public areas of Dubai, both in new installations and retrofits of the existing assets. Implement efficiency measures, such as dimming and partial switch-off in residential areas. 7 Tariff Rates Adjust electricity and water tariff rates in Dubai to be cost-effective, ensure economic efficiency, and align ratepayer with DSM objectives. 8 Shams Dubai Encourage building and household owners in Dubai to install solar photovoltaic (PV) systems on their rooftop and connect them to Dubai Electricity and Water (DEWA) grid; and as a result, reduce their electricity bills and total demand on the grid. DID YOU KNOW? A key mechanism broadly adopted is the principle of governing by example, whereby the government takes the first steps in a new initiative and builds success cases to develop a market that the private sector can leverage in subsequent phases. The principle was tested in the implementation of the Dubai Green Building Regulations and Specifications 2010, which were made mandatory for government buildings only in initial years. The principle has also been applied to other programmes, so far the Building Retrofits Programme and the Standards and Labels Programme through the Green Public Procurement for Energy and Water Efficiency initiative. Exhibit 4: Scope of the Demand Side Management programmes 17

18 DSM Targets The government of Dubai is committed to achieving ambitious electricity and water savings through the implementation of the eight DSM programmes. By 2030, Dubai targets overall electricity savings of about 19 TWh and water savings of 47 BIG, which correspond to 30% savings versus business as usual (see exhibit 5). THE DSM STRATEGY TARGETS 30% SAVINGS BY 2030 CONTEXT AND OVERVIEW OF THE DSM STRATEGY VS. BUSINESS AS USUAL CONSUMPTION Targeted electricity savings from DSM Programmes Targeted water savings from DSM Programmes 2030, TWh 2030, BIG -5.3 (27.9%) (32.2%) Building Regulations Building Regulations -4.9 (25.8%) -9.1 (19.3%) Tariff Rates Tariff Rates -4.1 (21.6%) Standards and -2.7 Labels for Appliances and (14.2%) -1.7 District Cooling (8.9%) Equipment Building Retrofits -0.3 (1.6%) Outdoor Lighting (100%) Total DSM (18.8%) Water Reuse and Efficient Irrigation -8.2 (17.4%) Standards and labels for Appliances and Equipment -5.8 (12.3%) Building Retrofits (100%) Total DSM 2030 Exhibit 5: Demand Side Management 2030 saving targets for electricity and water 18

19 DSM Roadmap sector, its increasing participation is anticipated in the coming years. At the end of the rampup phase in 2020, savings are targeted to be 8-10% versus business as usual. A strategic roadmap to achieve the 2030 targets was defined and agreed upon by programme owners and DSCE in the DSM Policy document. The preparatory and activation phases of DSM Strategy implementation were completed with the institutional set-up, the definition of goals and roadmaps, and the activation of programmes (see exhibit 6). In the last ten years of strategy implementation, between 2020 and 2030, a second wave of DSM measures is planned to scale up energy savings from key DSM programmes and penetration is expected to reach a large portion of government and private sectors. CONTEXT AND OVERVIEW OF THE DSM STRATEGY As per the agreed roadmap, in the current phase of DSM Strategy implementation, the rampup phase, initial activities should rapidly scale-up, emerging capabilities should consolidate, pilot projects should progress towards larger scale roll-out, and programmes should start delivering substantial savings. In this phase, significant contribution from the government is still expected in pioneering implementation and showcasing success stories. As for the private Full activation of DSM programs Government leading by example through government specific DSM directives RAMP-UP Reduction Target Development of the DSM Strategy 2030 Reduction Target 4% PREPARATION % 2025 Reduction Target Reduction Target 30% 8-10% ACTIVATION Exhibit 6: Demand Side Management Strategy roadmap to 2030 While targets are fixed, a plan of such duration needs to be subject to a degree of flexibility. As new technologies and best practises around the world continue to emerge and Dubai growth patterns evolve, the DSM Strategy will undergo periodic revisions to fit a changing context. Set-up of Etihad Energy Services, Dubai s super ESCO Launch of TAQATI Dubai Energy Efficiency program, the DSM programme management office 2030 FULL BLAST Scale-up of existing DSM measures Development of new DSM initiatives 19

20 3.3 INSTITUTIONAL FRAMEWORK CONTEXT AND OVERVIEW OF THE DSM STRATEGY Implementation of the DSM Strategy is supervised by the DSCE. The DSCE, which governs broad aspects of energy supply and demand in Dubai, is chaired by His Highness Sheikh Ahmed bin Saeed Al Maktoum and comprises top executives from key Dubai Government institutions: Dubai Electricity and Water Authority (DEWA), Roads and Transport Authority (RTA), Dubai Municipality (DM), Emirates Global Aluminium (EGA), Emirates National Oil Company (ENOC), Dubai Supply Authority (DUSUP), Dubai Petroleum Affairs, Dubai Petroleum Establishment (DPE), Dubai Nuclear Energy Committee. Each DSM programme has its respective programme owner, a government entity responsible for its execution. The entity, which is selected on the basis of its mandate and strength, is focused on delivering results and addressing challenges specific to the programme it owns (see exhibit 7). A DSM Executive Committee, chaired by DSCE and comprising senior representatives from all programme owner entities, has been established to ensure coordination and support to the DSM Strategy. On the date of publication of this report, members of the DSM Executive Committee are: HE Ahmad Al Muhairbi Mohammed Al Shamsi Secretary General, DSCE Chairman Sr. Manager, Climate Change and Sustainability, DEWA Member Yousef Jebril Executive Vice President, Power and Water planning, DEWA Vice Chairman Faisal Rashid DSM Director, DSCE Secretary Ali Al Jassim CEO, Etihad Energy Services Member Aref Abou Zahr Executive Director, TAQATI Member Fahed Al Awadhi Director of Drainage and Irrigation Department, DM Member Fida Alhammadi Head Of Researches and Building systems, DM Member Graeme Sims Nabil Battal Director, Global Safety and Environment, DP World Member (on behalf of Dubai Free Zones Council) Mustafa Al Yousuf Board Member, Regulatory Supervisory Bureau for Electricity and Water in Dubai Member Bassel Saad Director of Roads Maintenance, RTA Member Samer Khoudeir Chief Sales and Marketing Officer, Empower Member Shamma Al Rahmah Manager, Business Planning and Performance Management, ENOC Member Taher Diab Sr. Director, Strategy and Planning, DSCE Member Executive Director, Regulatory Supervisory Bureau for Electricity and Water in Dubai Member 20

21 Supervision Direction CONTEXT AND OVERVIEW OF THE DSM STRATEGY Support Management DSCE Board DSM Executive Committee DSCE DSM Directorate DSM Programme Manager DSM Programme Implementation Teams Implementation DSM Programmes Programme Owners DSM Programmes Programme Owners 1 Building Regulations DM 5 Water Reuse and Efficient Irrigation DM 2 Building Retrofits Etihad ES & RSB 6 Outdoor Lighting RTA & DM 3 District Cooling (DC) Etihad ES & RSB 7 Tariff Rates DEWA 4 Standards and Labels for Appliances and Equipment ESMA 8 Shams Dubai DEWA & Etihad ES Exhibit 7: Governance structure of the Demand Side Management Strategy 21

22 6 Monitoring and Evaluation of DSM Savings CONTEXT AND OVERVIEW OF THE DSM STRATEGY AREF ABOU ZAHR Executive Director, TAQATI TAQATI DUBAI ENERGY EFFICIENCY PROGRAMME It is TAQATI s second year of operation since its launch in May 2016 as a dedicated programme management office to support the implementation of the DSM Strategy, as mandated by the Dubai Supreme Council of Energy. has been a year of great accomplishments for DSM Strategy stakeholders. TAQATI continues to provide advisory support to the programme owners in developing their DSM-related operational plans, and identifying associated risks and mitigation measures to meet annual targets. TAQATI has developed and started implementing the DSM Integrated Awareness Strategy (IAS2022) working closely with DSM programme owners and their Marketing and Corporate Communication teams. In addition, TAQATI has prepared to launch the Energy Efficiency Training Programme in collaboration with renowned international training institutions. Looking ahead, TAQATI will further streamline active support of DSM programme owners in operational planning and forecasting to achieve DSM 2030 targets through even closer collaboration, analytical thinking and consistent dedication in the aim of maintaining the same performance levels of the past years. TAQATI s vision is to be the driving mentor of electricity and water efficiency strategies to make Dubai one of the most sustainable cities in the world. The office s mission is to identify and lead the implementation of resultdriven electricity and water efficiency strategies, to achieve Dubai s sustainability goals. 5 Financing Mechanisms 2 4 Continuous Improvement and Special Projects 1 Advisory and Implementation Support Awareness Improvement 3 Capacity Building Exhibit 8: TAQATI functions 22

23 4 DSM STRATEGY ACHIEVEMENTS 23

24 4.1 OVERVIEW OF THE MAIN ACHIEVEMENTS TO DATE DSM STRATEGY ACHIEVEMENTS IN nforcement of Dubai Green E Building Regulations and Specifications (DGBRS) 2010 on new government buildings Penetration of switch-off in 100% of street lights in designated residential areas Signing of DSM Policy document and DSM programme targets by programme owners Launch of TAQATI Dubai Energy Efficiency Programme, the DSM programme management office Enforcement of DGBRS 2010 on all new buildings Establishment of the solar rooftop division of Etihad Energy Services Establishment of ESCO Regulations and Accreditation Scheme Launch of the Green Public Procurement Initiative Review of DEWA tariff rates Establishment of Etihad Energy Services Launch of the Energy Efficiency Standardization and Labelling Programme 2016 Launch of Shams Dubai Enactment of Retrofit Directive No.1 of 2015, for energy audits and retrofits in government buildings Implementation of revised irrigation standards for water quantity in all new public landscaping Completion of Objective 1 of the Energy Intensity Mapping Initiative with data integration for 5,000 buildings Completion of JAFZA retrofit, the largest guaranteed savings project in the Middle East Completion of Hatta solar, the largest residential solar rooftop project in the world Installation of first LEDs in street lights Exhibit 9: Timeline of main Demand Side Management achievements in Dubai, from 2010 to 24

25 4.2 OVERALL PERFORMANCE IN Base Case Electricity and Water Savings The Demand Side Management (DSM) performance continues to show momentum in. At the end of, DSM programmes have saved 3.3 TWh of electricity, 13% over the 2.9 TWh target for the year, and 4.9 BIG of water, 2% over the 4.8 BIG target for the year. Compared to business as usual consumption, which is the reference for the 30% by 2030 target, those savings represent 7.6% and 4.3% of the total baseline consumption for electricity and water, respectively (see exhibit 10) A. Annual Electricity Savings (TWh) IN Savings vs. BAU Savings of DSM STRATEGY ACHIEVEMENTS IN % 2025 Targets 2030 Savings Kilowatt Hours 3.3 Billion Base Case Reduction of Business as usual 7.6% vs. Savings of Imperial Gallons 4.9 Billion B. Annual Water Savings (BIG) 2011 Reduction of 4.3% Savings vs. BAU % 2025 Targets 2030 Savings vs. Business as usual Exhibit 10: A ctual annual savings achieved from the implementation of DSM programmes versus target savings (A. Annual electricity savings B. Annual water savings) 25

26 Contribution of DSM Programmes t o Savings The impact of the tariff review applied in 2011 by Dubai Electricity and Water Authority (DEWA) is still significant, but its share of the overall DSM savings has been decreasing; on one hand, due to the natural degradation of the price signalling effects of tariff reforms over time, and, on the other hand, as a result of more substantial savings from other DSM programmes (see exhibit 11). Initial savings from DGBRS 2010, ESMA standards and district cooling Savings from DEWA tariff review 2% DSM STRATEGY ACHIEVEMENTS IN 8% 14% 5% 5% +65% savings from other programs Initial savings from efficient irrigation in new landscapes and DGBRS 2010 Savings from DEWA tariff review 3% 1% 4% 7% 10% 4% 3% 4% 2% 6% 16% 32% 7% 8% 38% 91% 100% 100% 99% 96% 83% 90% 71% 56% A. % Contribution of DSM programs to total electricity savings Building Regulations 2. Building Retrofits District Cooling 4. Standards and Labels for Appliances and Equipment 42% 34% % 23% 40% 100% 10% 7% 9% 6% 4% 18% Increasing savings from ESMA standards and efficient irrigation in new landscapes 77% 56% 2016 B. % Contribution of DSM programs to total water savings 6. Outdoor Lighting 7. Tariff Rates Building Regulations 2. Building Retrofits Standards and Labels for 7. Tariff Rates Appliances and Equipment 5. Water Reuse and Efficient Irrigation Exhibit 11: Percentage contribution of DSM programmes to the total DSM Strategy savings, for years 2011 to (A. Electricity savings and B. Water savings) 26

27 -1.3% Reduction in Consumption per Capita 14 An encouraging trend that has been observed in 2016 and again in is the consistent reduction in per capita consumption for both electricity and water. Electricity consumption dropped by 2.8% in comparison to the consumption in 2016 while water consumption dropped by 3.8%. The sustained results confirm the positive impact of DSM programmes on unitary consumption. Looking at long term trends, since the inception of the DSM Strategy, consumption per capita has decreased by an annual average of 1.3% for electricity and 1.7% for water, which is in line with other important, successful DSM programmes around the world (see exhibit 12). 12-9% A. Electricity Consumption per capita year ( 000 kwh) DSM STRATEGY ACHIEVEMENTS IN Consumption per Capita Consumption % 1. Population figures used in the calculation are an estimate of the % CAGR % vs % -11% Equivalent Permanent Population of Dubai, which comprises residents of -11% 30 Dubai, and a weighted contribution 25 from people working in Dubai but residing in neighbouring emirates 20 and from tourists. 2. Total consumption exhibited is at end-user level and excludes power stations and desalination auxiliaries, as well as losses in the transmission and distribution networks. 15 B. Water Consumption per capita year ( 000 IG) Consumption % CAGR % vs Exhibit 12: Trends in per capita consumption, showing the compounded annual growth rate (CAGR) and total decrease in consumption from 2010 to (A. Electricity consumption per capita B. Water consumption per capita) 27

28 2016 Savings Savings Target Delta YoY Deviation vs. target Building Regulations % 113% Savings are based on data received from Dubai Municipality and Trakhees on green buildings commissioned Building Retrofits % 159% Increase in savings mainly results from a 300% increase in savings from private ESCO (non-etihad ES) projects District Cooling % -5% Savings are based on data received from the five main district cooling operators in Dubai 1,126 1,256 1,364 12% -8% Savings result from enforced efficiency standards for unit air conditioners, indoor lighting, refrigerators and washing machines Data collection is currently limited to RTA and DM, excluding savings from outdoor lighting by other developers. As part of the DSM Strategy refresh update, targets will be potentially adjusted/ broken down by entity DSM Programme DSM STRATEGY ACHIEVEMENTS IN A. Annual Electricity Savings by DSM programme in versus targets and 2016 Standards and Labels Outdoor Lighting (GWh) 13 (1) (GWh) (GWh) (%) (%) % -41% Notes on the results Tariff Rates 1,188 1,125 1,046-5% 8% Decrease in savings is due to the gradually decreasing effect of 2011 tariff review Shams Dubai n/a 171% n/a Increase in savings results from an increase in connected capacity from 7.3 MW in 2016 to 22.6 MW in 2,807 3,312 2,940 18% 13% 6.8% 7.6% 6.8% Grand Total Total as % of baseline Exhibit 13: A. Actual annual electricity savings by DSM programme in versus targets and 2016 savings (1) 2016 savings were readjusted due to updated data received by RTA and for the purpose of comparing them with savings 28

29 2016 Savings Savings Target Delta YoY Deviation vs. target Building Regulations % -42% Deviation from target could be explained by an underestimation of the water baseline intensity, which is being investigated Building Retrofits % -50% Decrease in savings from last year is due to de-scoping water measures in a major retrofit project Standards and Labels n/a 1,134 1,246 n/a -9% Savings result from enforced efficiency standards for indoor water fixtures. Deviation from target is due to a delay in enforcing water efficiency standards versus the anticipated enforcement date Water Reuse and Efficient Irrigation % 49% Savings result from revised irrigation standards for water quantity applied to new public landscapes 2,886 2,738 2,189-5% 25% Decrease in savings is due to the gradually decreasing effect of 2011 tariff review 3,737 4,885 4,788 13% 2% 3.4% 4.3% 4.2% DSM Programme DSM STRATEGY ACHIEVEMENTS IN B. Annual Water Savings by DSM programme in versus targets and 2016 Tariff Rates Grand Total Total as % of baseline (MIG) (MIG) (MIG) (%) (%) Notes on the results Exhibit 13: B. Actual annual water savings by DSM programme in versus targets and 2016 savings 29

30 Reduction in Carbon Emissions An important impact of savings on electricity and water consumption is the reduction in carbon dioxide (CO2) emissions resulting from avoided electricity and water generation, which today relies in large part on non-renewable sources. (see exhibit 15) Avoided DSM STRATEGY ACHIEVEMENTS IN SINCE Million Metric Tons of CO Equivalent to emissions from CO2 CO2 Emission Abatement (million metric tons) Million cars driven in Dubai for 1 full year Cumulative Exhibit 15: Cumulative carbon dioxide emission abatement from DSM programmes, from 2011 to 30

31 4.3 MONETISING DEMAND SIDE MANAGEMENT SAVINGS Savings in electricity and water consumption translate into economic savings in the form of avoided cost and freed up resources that can be diverted to other purposes. DSM STRATEGY ACHIEVEMENTS IN The Total Resource Cost (TRC) Test measures the net benefits of the DSM Strategy from the perspective of all participants, including DSM programme owners (with DEWA as both the utility and programme owner), implementing entities (developers, ESCOs, district cooling operators), and end users (DEWA customers). On a consolidated basis, i.e., considering DSM participants as a whole, the net benefits of the DSM Strategy weighs monetary savings, lower operating costs (e.g., generation fuel cost) and avoided capital investments for new generation capacity and equipment; against incremental cost brought about by the DSM programmes and Strategy (equipment, administrative and overhead costs). SINCE 2011 In, the cost of DSM Strategy is estimated to be 8 fils for each kwh saved, which is significantly below the cost of power generation, confirming the rationale to invest in energy efficiency measures (see exhibit 16). OPEX SAVINGS Equivalent to saving 142,000 MSCFT of natural gas Monetary savings (up to ) Billion AED in operational costs and capital investments 8 fils/kWh saved(1) 3.1 CAPEX SAVINGS Equivalent to saving 3x200 MW new open cycle gas turbine units Saved Lifetime Net Savings(1) Incremental cost of DSM programs (2011 to ) Net monetary savings from DSM Strategy (up to ) All values are in Billion AED (1) Calculated over the lifetime of installed equipment and implemented measures from 2011 to. Future monetary savings are discounted with a 5% yearly rate. Exhibit 16: Total Resource Cost Test results for the DSM Strategy from 2011 to Equivalent to Standard Cubic 142,000 Million Feet of natural gas 3x 200 Megawatt open cycle gas turbine units Based on the TRC test, the net present value of savings that Dubai stands to achieve out of investments made since 2011 on DSM related measures and equipment, is AED 4.8 Billion. In addition to its direct benefits, the DSM Strategy brings several indirect benefits to Dubai. This more extended set of advantages includes, environmental conservation, positive impact on residents health, job creation, reinvestment of saved resources, and attraction of investments resulting from a more sustainable and efficient city. With all the valuable socio-economic and financial benefits, the Dubai Government is strongly committed to addressing any challenges the DSM Strategy may face along the way. 31

32 5 DEEP DIVE ON DSM PROGRAMMES AND INITIATIVES BUILDING REGULATIONS BUILDING RETROFITS DISTRICT COOLING STANDARDS AND LABELS WATER REUSE AND IRRIGATION OUTDOOR LIGHTING TARIFF RATES SHAMS DUBAI 32

33 PROGRAMME OWNER DSM PROGRAMME 1: BUILDING REGULATIONS PROGRAMME SCOPE Implement Dubai Municipality s (DM) existing green building regulations in new buildings and update regulations to double electricity and water savings. HE DAWOOD AL HAJIRI Director General, Dubai Municipality Visit

34 BUILDING REGULATIONS PROGRAMME SAVINGS OPERATIONAL DASHBOARD 8, ,499 3, Electricity Savings (GWh) Cumulative number of commissioned buildings compliant to DGBRS 2010 permitted by DM Cumulative number of commissioned green buildings permitted by Trakhees Water Savings (MIG) PROGRAMME INTRODUCTION 10,600 11,888 9, % 30% 55% At the current economic pace, Dubai is expected to continue its aggressive growth path, making buildings one of the key contributors to energy consumption in the emirate. Dubai Municipality issued the first comprehensive compilation of regulations in In January 2011, the Dubai Green Building Regulations and Specifications (DGBRS) 2010 was made mandatory on all new government buildings, and in March 2014, after testing the code across more than 40 buildings, it was enforced on the private sector. DGBRS 2010 is estimated to bring 20% electricity and water savings in new buildings compared to pre-dgbrs buildings. Building Regulations has the highest impact among all DSM programmes, about 30% of the overall targets. To achieve the targets, the Demand Side Management (DSM) Strategy relies on the full implementation of DGBRS 2010 and updates to the regulations in 2022 resulting in 25% additional savings. DGBRS 2010 penetration out of total gross floor area of commissioned buildings permitted by DM Annual number of DGBRS 2010 compliant building permits issued by DM 74% 91% 97% DGBRS 2010 penetration out of total gross floor area of buildings permitted by DM Legend:

35 BUILDING REGULATIONS MAIN ACHIEVEMENTS 1 AL SA FAT, DUBAI S GREEN BUILDING EVALUATION SYSTEM As building permits issued have reached 97% compliance to DGBRS 2010 in and in light of the growing willingness of developers and building owners to exceed minimum DGBRS 2010 standards, DM has developed Al Sa fat, a green building evaluation system to boost recognition of higher energy efficiency buildings. Al Sa fat leverages the work done on DGBRS It is also a prescriptive code, which, first, defines minimum mandatory standards to be followed for each building component. Provided minimum standards are fulfilled, developers can choose to meet additional prescriptive requirements and achieve the Gold or Platinum Sa fat ratings (see exhibit 17). By giving recognition to those proactive efforts, Al Sa fat opens the way to market mechanisms that would eventually allow reflection on property prices and rents. The first version of the code (v1.0) was circulated in September 2016, and, in, campaigns and seminars were held to raise awareness on the new code. Additionally, DM carried out a number of workshops with developers, consultants, and other stakeholders to gather practical feedback from the market. Accordingly, DM has amended some regulations and developed a guidebook to guide the implementation of the code. +4 requirements +16 requirements Optional UNDER EVALUATION Mandatory for all other buildings +39 requirements Mandatory for private villas and industrial buildings 42 requirements Bronze Sa fa Silver Sa fa Gold Sa fa Platinum Sa fa Exhibit 17: Al Sa fat evaluation system (v1.1, with update on mandatory standards for each building type communicated in Circular 222 of ) 35

36 BUILDING REGULATIONS PRIORITY AREAS 1 LAUNCH OF AL SA FAT DID YOU KNOW? Nearly zero energy buildings (nzebs) are buildings with nearly zero energy use intensity, and the low amount of energy these buildings require typically comes from on-site or off-site renewable energy sources. In a survey conducted by the Emirates Green Building Council in as part of their report on the adoption of nzebs in the UAE, Defining Nearly Zero Energy Buildings in the UAE, 65% of survey participants responded that they believe the UAE market is ready to implement an nzeb strategy between 2020 and Actually, early adopters of the nzeb concept already exist in the UAE with a number of demonstrable cases in the market (see exhibit 18). nzeb is a globally adopted concept. In fact, the United States, Australia and some European Union member states have set clear nzeb targets and a timeline for full implementation of the concept in new buildings by 2020 and The same study finds that, considering the climatic conditions and taking a costeffective approach, an nzeb in the UAE can be defined as a site with energy use intensity lower than 90 kwh/m2/year. * The survey involved 55 respondents, including developers, consultants, government officials and academics in the construction sector. DM plans to finalise amendments and launch the Sa fat evaluation system in quarter four of UNIFYING GREEN BUILDING REGULATIONS ACROSS FREE ZONES DGBRS 2010 is only applied in few free zones which rely on DM for building permitting. Other free zones adopt different green building regulations, even if these are partially in line with DGBRS Beyond the loss of energy saving opportunities resulting from lower efficiency standards in some free zones, differences in methodologies and requirements cause inefficiencies in the real estate value chain. Shared regulations would bring benefits to all stakeholders: higher compliance to regulations for authorities, lower design and contractor service costs for developers, and eventually reduced final cost for customers. 3 PROMOTING HIGHER SA FAT RATINGS AND NEARLY ZERO ENERGY BUILDINGS Another priority for the coming years is to promote the adoption of Gold and Platinum Sa fat ratings, in line with the growing adoption of nzebs globally. It is important for Dubai s buildings to begin moving towards a near zero energy consumption in order to remain in line with global developments and support the targets of the Dubai Demand Side Strategy. 36

37 BUILDING REGULATIONS nzeb recipe: insulation, smart technology, solar and great design The Sustainable Autonomous House by the Mohammed Bin Rashid Space Centre (MBRSC) The Autonomous House, constructed by the MBRSC engineers, is the first passive house in a hot and humid climate and in the MENA to be certified by the Passive House Institute (Germany). The certification was received on August 21, The house also received the MENA Green Building Award in the green residential building category and the Emirates Energy Gold Award in the small project category. The house was designed in a way that respects the natural and local environment and is a model for future designs in the realestate development sector in the UAE. Overview of the engineering design features of the house: The envelope is designed with engineered wood structure, wool insulation, and triple glazing windows that ensure minimal thermal loss. Appliances and equipment used are highly efficient, and smart technology is employed to maintain indoor temperature and enable remote sensing of light fittings. The Sustainable Autonomous House, which is completely off the grid, is powered by solar energy. The roof hosts 161 solar panels that generated 48,210 kwh in. Due to its highly insulating and smart design materials, the house consumes only 50% of the electricity produced by the panels. The surplus of energy is stored in batteries and transferred to the neighbouring buildings. Exhibit 18: A case study on net-zero energy buildings in Dubai 37

38 PROGRAMME OWNER DSM PROGRAMME 2: BUILDING RETROFITS PROGRAMME SCOPE Retrofit the existing building stock in Dubai with electricity and water efficiency measures in the aim of reducing energy intensity of up to 30,000 buildings in Dubai by ALI MOHAMMED AL JASSIM CEO, Etihad Energy Services 05 Visit 38

39 BUILDING RETROFITS PROGRAMME SAVINGS OPERATIONAL DASHBOARD 132 2,465 1, ,454 1, Electricity Savings (GWh) Water Savings (MIG) Cumulative number of building equivalents (average sized building) Cumulative number of retrofitted buildings PROGRAMME INTRODUCTION Dubai Government launched Dubai s Retrofit Programme by setting-up a super energy service company (super-esco) in 2013, Etihad Energy Services Company (Etihad ES), with the role of developing the energy performance contracting (EPC) market in Dubai and attracting industry players, ESCOs, to provide technical services. In parallel, the Regulatory and Supervisory Bureau for Electricity and Water in Dubai (RSB) has regulated the EPC market by defining an accreditation scheme for ESCOs in 2014 and one for Energy Auditors a year later. To stimulate market demand and to govern by example, the Dubai Supreme Council of Energy (DSCE) enacted Directive No. 1 of 2015, which mandates walkthrough energy audits in all government buildings greater than 1000 m2, and detailed energy audits and retrofits when expected energy savings are greater than 20% and payback is lower than 10 years. The directive targets 20% water and electricity savings from government entities by % 25% 21% Average electricity savings from retrofit projects versus baseline consumption Number of accredited ESCOs 15 5 Number of accredited auditors Legend:

40 BUILDING RETROFITS MAIN ACHIEVEMENTS 1 MARKET GROWTH AND LARGE SCALE RETROFIT PROJECTS The regulated EPC market has seen substantial growth in the past four years. Since the establishment of Etihad ES and the regulation of the market, 2,465 buildings have been retrofitted by Etihad ES and the 21 accredited ESCOs. In, total annual electricity savings from reported projects have doubled to 194 GWh, noting that this figure does not include retrofits carried out by non-accredited ESCOs. A. Mohammed Bin Rashid Housing Establishment, a DEWA corporate social responsibility project B. Wasl properties, a guaranteed savings project a. P roject Scope: Lighting retrofit of 1,658 villas: - 89,638 inefficient lighting fixtures replaced with LEDs. Old lights were recycled a. Project Scope: c. Project Execution: Retrofit of common areas Led by Etihad ES and in 243 buildings (some 30 executed by SmartAE years old): - 95,000 old lighting fixtures d. Project Savings: replaced with LEDs Five years guaranteed - Deep retrofit of HVAC savings contract of: system - AED 14.8 million per year - 5 MWp solar photovoltaic % electricity savings (PV) system installed or 33.3 GWh/year b. P roject Financing: Investment value of AED 3.1 million, financed by DEWA as a corporate social responsibility project c. P roject Execution: Led by Etihad ES and executed by Smart4Power d. P roject Savings: Five years guaranteed savings contract of: - AED 0.6 million per year - 80% electricity savings or 6.4 GWh/year b. Project Financing: Investment value of AED 69 million For Etihad ES, included the retrofit of 157 labour accommodation buildings in Jebel Ali Free Zone (JAFZA), the largest guaranteed energy saving project in the Middle East, and a lighting retrofit project for 1,658 villas in Mohammed Bin Rashid Housing Establishment (see exhibit 19 A.). While completing these large scale projects, Etihad ES also initiated two other major retrofit projects, one of AED 69 million with wasl properties (see exhibit 19 B.) and another of AED 140 million with Dubai Airports. Exhibit 19: Overview of the large scale retrofit projects carried out in by Etihad Energy Services 40

41 BUILDING RETROFITS Etihad ES uses a business model that aims at facilitating financing for retrofit projects in the government sector. It is a guaranteed savings model that provides financing through a Shari a compliant structure, created in partnership with the National Bond Corporation. The model (see exhibit 20) was first applied to the JAFZA project, and has since been applied with some variations to other projects led by Etihad ES. --- Client Upgrade in Control Upgrade in Equipment Increase in Comfort Level Guaranteed Savings Paym ent T Repayments Financial Institution --- Financing gh D EWA Bill Repayments Audit & Consulting Tendering & Bid Negotiation Project Management M&V of Savings STUDY ON BUILDING ENERGY RATING SCHEME FOR DUBAI In parallel, in, the RSB conducted a study as a first step in the development of a rating scheme that enables existing buildings in Dubai to be rated for their electricity and water efficiency performance. The scheme is one of the major upcoming initiatives planned in the DSM Strategy; it will help make energy efficiency more visible, will enable the real estate market to truly value a building s efficiency performance, and ultimately it will work as a tool to improve efficiency in the built environment. Retrofit Work Savings Guarantee Payments Exhibit 20: Etihad ES s business model hrou 2 ESCOs --- Upgrade Control Retrofit Existing Equipment Equipment Replacement Self Power Generation As for accredited ESCOs, the growth trend is very positive. Reported savings from retrofit projects have quadrupled again in as they had in

42 BUILDING RETROFITS PRIORITY AREAS 1 STIMULATING THE MARKET FOR WATER RETROFITS While actual electricity savings surpassed target savings by 59% in, water savings from reported projects did not meet pre-set target savings. The gap could be due to unaccounted for savings as the majority of water retrofit projects are carried out by facility management companies or other non-accredited ESCO companies. The gap could also be the result of other factors specific to water retrofits: the business case is not as attractive as it is for electricity retrofits, or the market to address is harder to tap into (i.e. national villas and labour accommodation as opposed to government buildings which are easier to access yet have low water usage). Therefore, it is important to investigate the causes further and stimulate water retrofit projects in the coming years. 2 3 GOVERNING BY EXAMPLE, IMPLEMENTING DIRECTIVE NO.1 OF 2015 Eight government entities have so far retrofitted their facilities while another 13 entities have completed the energy audit preceding the retrofit (see exhibit 21). Etihad ES will continue to follow up on the progress of the directive s implementation in the coming years. 11 Excused(1) 25% 8 21 Completed % Remaining Ongoing/ Offer made 38% 62% Ongoing/ Offer made 27% ENERGY AUDITS # Number of buildings ENERGY RETROFITS SUPPORTING RETROFIT PROJECTS IN OTHER SECTORS OR SUBSECTORS Etihad ES has been facilitating retrofit projects in government facilities; meanwhile accredited ESCOs have been penetrating the commercial and residential sectors. In fact, in, savings from retrofits in commercial and residential buildings represent 80% of contracted electricity savings by accredited ESCOs. On the other hand, retrofits in villas and small medium enterprises (SMEs), in the form of energy efficiency improvements and beyond corporate social responsibility projects, are still low due to lack of awareness, lack of organised support mechanisms, and perceived long term payback period in the absence of affordable funding. In response, Etihad ES is working on developing measures to target the residential and SME sectors (e.g., promotional programmes). (1) The government building is excused from energy audit, as energy conservation measures have already been applied or the building is not under the supervision of the entity occupying it Exhibit 21: Status of Directive No. 1 of

43 DSM PROGRAMME 3: PROGRAMME OWNER DISTRICT COOLING PROGRAMME SCOPE Increase the penetration of efficient district cooling (DC) to 40% of the total cooling capacity of Dubai in 2030 by regulating the DC market. GRAEME SIMS Executive Director, Regulatory Supervisory Bureau for Electricity and Water in Dubai Visit 43

44 DISTRICT COOLING PROGRAMME SAVINGS OPERATIONAL DASHBOARD % % 17.5% % 47% Electricity Savings (GWh) DC penetration out of total cooling capacity DC efficiency (in kw/tr) PROGRAMME INTRODUCTION In Dubai s hot environment, the cooling load drives significant swings in electricity consumption between winter and summer. Cooling accounts for 50% of the electricity consumption in Dubai and as much as 70% in peak times. Cooling can be delivered through different technologies. A study carried out by the Regulatory Supervisory Bureau for Electricity and Water in Dubai (RSB) shows that, on average, water-cooled solutions offer superior energy efficiency, 35% to 45% higher than air-cooled alternatives. In high cooling load densities and steady demand, DC is the most efficient water-cooled technology. Hence, the programme aims at increasing DC in Dubai to 40% of the cooling market by 2030, by adopting the technology in new construction projects and by retrofitting old developments. The programme also expects DC firms to continuously improve the efficiency of their plants against a baseline. +37% +37% +35% DC efficiency versus baseline air cooled technology 54% DC capacity utilisation at peak Legend:

45 DISTRICT COOLING MAIN ACHIEVEMENTS 2 AN IMPROVED MARKET DATA COVERAGE 1.00 CONTINUOUS GROWTH IN DEMAND FOR TREATED SEWAGE EFFLUENT DC delivers the greatest benefit when efficient plants are operated using treated sewage effluent (TSE) water. It is therefore encouraging to see that the use of TSE in DC has increased nearly three-fold from just over 270 MIG in 2012 to 670 MIG in. TSE contributed in to over 40% of all water used in DC plants (see exhibit 23). DC market data coverage has improved in ; saving results encompass data received from the five main DC companies operating in Dubai. The improved coverage will enable better analysis of market share trends and more accurate measurement of savings attributable to increased market share and superior DC efficiency. Savings from the DC Programme amount to 176 GWh in, which is within 5% of the pre-set target savings for (see exhibit 22). TSE annual usage ' Exhibit 22: T rends in output and energy efficiency of the five main district cooling operators in Dubai (2014 to ) 700 Energy Efficiency Output 500 MIG 0.90 MTHR kw/tr Exhibit 23: G rowth in annual usage of treated sewage effluent in district cooling plants in Dubai 45

46 DISTRICT COOLING PRIORITY AREAS 1 2 ENACTING A REGULATORY FRAMEWORK Formal regulation of the DC market in Dubai remains a key issue and is required to ensure that the benefits of DC are shared fairly between the relevant stakeholders: customers, developers, and investors, and that DC continues to offer greater efficiency than alternative cooling technologies. Customers Value the service offered and the additional facilities that can be offered when buildings do not house their own cooling systems DC Operators/Investors Make reasonable returns by investing in district cooling companies IMPROVING THE AVAILABILITY OF TREATED SEWAGE EFFLUENT DC providers are making the most of TSE and, as mentioned above, it now accounts for over 40% of all water consumed in Dubai s DC plants. Dubai Municipality (DM) is actively working to make more TSE available for DC plants in accordance with the Integrated Water Resource Management Strategy, a strategy developed by the Dubai Supreme Council to optimise the use of water resources in Dubai. Forecasted growth in demand for DC will have a corresponding increase in demand for TSE for the cooling process. Hence, another priority for the programme is to ensure that the network enhancements made by DM are aligned to deliver TSE to cooling plants. Developers Consider district cooling to be their technology of choice because their customers express satisfaction with it over other technologies Exhibit 24: Conditions favoring adoption of District Cooling by stakeholders 46

47 PROGRAMME OWNER DSM PROGRAMME 4: STANDARDS AND LABELS FOR APPLIANCES AND EQUIPMENT EN E EFF GRY LABICIEN EL CY 4 PROGRAMME SCOPE Develop, implement and regularly update electricity and water efficiency standards and comparative labels for high consuming appliances and equipment used in the UAE. HE ABDULLA AL MAEENI Director General, Emirates Authority for Standardization and Metrology Visit 47

48 STANDARDS AND LABELS FOR APPLIANCES AND EQUIPMENT PROGRAMME SAVINGS 1,126 1,134 1, Electricity Savings (GWh) (n/a) (n/a) Water Savings (MIG) PROGRAMME INTRODUCTION In 2011, the Emirates Authority for Standardization and Metrology (ESMA) introduced the Energy Efficiency Standardization and Labeling (EESL) Programme to prevent the influx of electricity and water inefficient products to the UAE and drive the market towards higher efficiency products. The programme s key mechanisms are the Minimum Energy Performance Standards (MEPS) and the Comparative Labelling Scheme. Regulated electricity and water appliances must comply with minimum performance criteria and receive a certificate from the authority to be legally sold in the market. OPERATIONAL DASHBOARD Additionally, they need to display a 1 to 5 star label, outlining their level of efficiency (more stars means higher efficiency). 26% 15% 15% Standards are raised every two to three years for each product category, through consultation with experts and industry players, Share of 4 and 5 star ACs sold thus strategically removing less efficient products from the market. DSM Programme 4 contributes about 22% and 17% of the overall 2030 DSM electricity and water targets. Meeting programme targets relies heavily on public education, in addition to regulatory enforcement, to promote adoption of efficient appliances. 76% 79% 15% 18% 17% Share of 4 and 5 star refrigerators sold 90% Legend: Share of 4 and 5 star washing machines sold

49 STANDARDS AND LABELS FOR APPLIANCES AND EQUIPMENT Standards and technical regulations are developed through consultation with the industry, and notification on new draft regulations is sent to the World Trade Organization (WTO). Standards and regulations are then approved by the UAE cabinet before being published in the UAE Official Gazette. Once a regulation is published, ESMA holds meetings with industry players to relay the objectives and technical and administrative requirements for implementing the regulation. OEMs (Original Equipment Manufacturers) and retailers are given a transition period to adjust with the regulation before it is enforced on new products imported to the country, and, at a later stage, on existing products already available for purchase. MAIN ACHIEVEMENTS 1 NEW MINIMUM ENERGY PERFORMANCE STANDARDS Since the launch of the EESL Programme, with the introduction of minimum standards for non-ducted room air-conditioners and adoption of comparative labels, the EESL Programme has strategically expanded to include other high consuming product categories and has undergone several steps of improvement (see exhibit 25). In, MEPS for internal water fixtures (basins, showers, etc.) and flushes have been fully enforced. As internal water usage is estimated to correspond to 65% of total water consumption in Dubai (source: Dubai DSM energy model), the standards are expected to have a high impact in reducing water consumption. March May - EESL for washing machines and dryers (UAE.S ) April -O fficial Launch of EESL Programme with non-ducted room ACs (UAE.S ) and Introduction of comparative labelling 2011 December - EESL for refrigerators and freezers (UAE.S ) - UAE regulation for lighting products E ESL for storage water heaters (UAE.S ) October -U pdate on EER levels for non-ducted ACs (UAE.S ) -E ESL for ducted commercial ACs (UAE.S ) December -U AE green labelling for water fixtures 2014 July February - I nclusion of the 20ºC limit for non-ducted ACs (UAE.S ) -R e-design and inclusion of RFID technology to the comparative labels - EESL for TVs November - EESL for vacuum cleaners - I nclusion of the 20ºC limit for commercial ACs (UAE.S ) -E ESL for dishwashers (UAE.S ) E ESL for roto-dynamic water pumps 2018 Exhibit 25: Energy Efficiency Standardization and Labeling Programme implementation roadmap (showing publication date of the regulation in the UAE Official Gazette) 49

50 STANDARDS AND LABELS FOR APPLIANCES AND EQUIPMENT 2 CRITICAL SUCCESS FACTORS AND ESTABLISHED INITIATIVES ACROSS THE SUPPLY CHAIN Effective implementation of the programme requires action along the entire supply chain, from import of appliances and equipment to consumer purchase and usage. It consists of enforcing regulation, building awareness and educating consumers to guide their purchase towards higher class appliances, and monitoring and controlling improvement in electricity and water efficiency in the market (see exhibit 26). Among the latest initiatives to support the EESL programme, ESMA formed a Market Surveillance section in In Dubai, the section spearheads all market surveillance actions and works in direct collaboration with Dubai Municipality and the Department of Economic Development to test products (some in local laboratories), inspect point of sales, issue fines and recall non-compliant products from the market. In, ESMA reports 89% compliance rate* to the EESL Programme. Additionally, early, ESMA launched an improved comparative label that utilises RFID (Radio Frequency Identification) and Quick Response (QR) code technologies. This improved design provides better security by preventing tampering, and facilitates inspection. The QR code enables consumers to verify information on the EESL label directly from ESMA secure database. SUPPLY CHAIN OEMS IMPORTERS/ DISTRIBUTERS 1. Issue MEPS ESMA 2. Issue conformity certificate for product model Conformity assessment bodies registered with ESMA AWARENESS IMPROVEMENT CONSUMERS EXISTING INITIATIVES AND RESPONSIBLE BODIES CRITICAL SUCCESS FACTORS REGULATION ENFORCEMENT RETAILERS 3. Verify availability of conformity certificate 4. Survey the market and issue fines for non-conforming products or products without labels UAE Customs ESMA, Dubai Municipality and Department of Economic Development 5. Develop campaigns and other enablers to build awareness and educate retailers and consumers on the benefits of energy efficient appliances, and ultimately drive the purchase of efficient appliances and their efficient usage ESMA, DEWA, DSCE/TAQATI and other government entities MARKET MONITORING 6. Monitor adoption and overall improvement in electricity and water efficiency, as well as, consumer behavioural change ESMA, DSCE/TAQATI Exhibit 26: Existing Energy Efficiency Standardization and Labeling initiatives in Dubai across the supply chain of appliances and equipment * The inspection involved visits to 366 point of sales and the testing of 378 products. 50

51 A. 3 STANDARDS AND LABELS FOR APPLIANCES AND EQUIPMENT PRIORITY AREAS 1 B. Unified label across the GCC INTRODUCING HIGHER STANDARDS AND NEW REGULATIONS The EESL Programme aims at achieving optimum efficiency in the market by raising the MEPS of products already included in the programme, on one side, and expanding the scope of the programme to new product categories, on the other. For new products, ESMA is planning to issue MEPS for TVs and Vacuum Cleaners in As for the most energy intensive products already included in the programme (e.g., ACs and water fixtures), raising the MEPS for these products has the highest impact on savings from appliances. It is therefore important to continuously monitor technological advancements in the market and test methods to ensure standards in the UAE are aligned with global standards. Unified ratings across the GCC G-Marking with QR code Regional Certification PROMOTING HIGHER EFFICIENCY PRODUCTS Despite the on-going efforts led by ESMA, DEWA, and other entities to cultivate public awareness, a market survey conducted by TAQATI in * to examine levels of awareness in energy efficiency among Dubai residents shows that only half of the general public takes into consideration the energy efficiency performance of an appliance before purchasing it while only a third is aware of the existence of ESMA labels. Programme four stakeholders are working on ways to increase the availability of higher efficiency (four and five star) models in the local market and promote these models to consumers. As reported by ESMA, 78% of ACs sold in are 1, 2 and 3 star rated models. (similar to CE Mark) 2 UNIFYING STANDARDS AND LABELLING IN THE GULF COOPERATION COUNCIL Realising the advantages of harmonization, ESMA is in direct collaboration with its counterpart members within the Gulf Standardization Organization (GSO) to develop a unified system of performance standards and labelling scheme. Unification would address cost and complexity implications faced by OEMs and retailers from dealing with different requirements. Similar programmes, such as G-marking of low voltage equipment (LVE) and toys (see exhibit 27.A) and unified labels for vehicles (see exhibit 27.B), are testaments to the Gulf Cooperation Council s (GCC) commitment to harmonization. Exhibit 27: A. Gulf Standardization Organization Conformity Tracking Symbol (GCTS): G-Marking with the notified body number and a QR code, used across the GCC on regulated appliances, in addition to local label B. GCTS label for fuel economy, a unified label used across the GCC for vehicles Through the enactment of the Green Public Procurement for Energy and Water Efficiency Directive in 2015, the government has already begun the efforts to promote highly efficient appliances. In fact, DSCE member entities have adopted high efficiency for lighting purchases, while criteria for the purchase of other energy intensive product categories are being tested (see section 5.10 on Green Public Procurement for Energy and Water Efficiency). * The market survey involved 1,500 respondents from the general public. 51

52 DSM PROGRAMME 5: PROGRAMME OWNER WATER REUSE AND EFFICIENT IRRIGATION PROGRAMME SCOPE Irrigate all public areas with treated sewage effluent water (TSE), implement efficiency measures in Dubai s green areas and use excess capacity of TSE for other uses (e.g., private irrigation and DC). TALIB JULFAR Assistant Director General, Environment and Public Health Services, Dubai Municipality Visit 52

53 WATER REUSE AND EFFICIENT IRRIGATION PROGRAMME SAVINGS Water Savings (MIG) PROGRAMME INTRODUCTION TSE water s use in public irrigation has enabled Dubai to increase its green spaces while saving about 49 BIG of desalinated water, annually, in. The TSE network of Dubai is one of the largest in the world, making the emirate a global best practise in the field. The Demand Side Management (DSM) Strategy recognises the value of TSE as an asset for Dubai and aims to optimise its consumption to divert excess volumes to other purposes which currently rely on desalinated water: private irrigation, district cooling (DC), and other industrial uses. In fact, Executive Council Resolution No. 27 of 2008 dictates the OPERATIONAL DASHBOARD use of TSE in DC plants. The low TSE prices, which are more than 80% below desalinated water rates for most customer groups, drive significant market demand for it. Dubai Municipality (DM) has already started applying measures to reduce consumption of TSE for public irrigation and free up volumes for other purposes. For example, a one-day-per-week switch-off programme has been implemented in some communities during the summer. Additionally, new irrigation standards for water quantity were defined for each plantation type and are being adopted in new communities. 92% 88% 90% 8% 8% TSE utilisation Legend: 7% Penetration of efficient landscaping (% of landscape areas affected by DSM measures) 53

54 WATER REUSE AND EFFICIENT IRRIGATION 6% 1% 10% MAIN ACHIEVEMENTS 1 USE OF EXCESS TREATED SEWAGE EFFLUENT BEYOND PUBLIC IRRIGATION 45% The use of TSE water beyond irrigation of public spaces has increased in the past few years. In, 44% of TSE was sold to private developers and farms (see exhibit 28), yet its use in these private sectors is still mostly limited to irrigation. Demand for TSE is also increasing in DC plants; in, TSE contributed to over 40% of all water used in the plants (see exhibit 23). 2 SEWAGE SYSTEM EXPANSION PROJECTS The sewage system in Dubai runs on a 1,100 km distribution network and two sewage treatment plants (STPs), one in Al Aweer and the other in Jebel Ali, with a total treatment capacity of 149 MIG/day. As part of DM s sewage system expansion efforts, in, the irrigation line on Sheikh Zayed road was extended to the Abu Dhabi boarders. Additionally, construction work for the expansion of the Jebel Ali STP has been initiated. Phase two of the plant will increase its treatment capacity by 80%, from 82 MIG/day to 148 MIG/day. 38% Used in the irrigation of public landscapes (by Dubai Municipality) Sold to private developers Used in governmental establishments Sold to private farmers Sold to district cooling operators Source: Dubai Municipality Exhibit 28: Share of treated sewage effluent usage by application in 54

55 WATER REUSE AND EFFICIENT IRRIGATION 3 ADOPTION OF EFFICIENCY MEASURES IN NEW LANDSCAPE PROJECTS In addition to the implementation of revised irrigation standards for water quantity in all new developments since 2015 (see exhibit 29) and the application of a one-day-per-week switch-off programme in some communities during the summer, DM has started adopting equal amounts of hardscape elements (e.g., gravel, glass) and greenery in all new landscape projects. The new landscape project on Al Khail Road, which will be complete in June of 2018, will feature hardscape elements in 60% of the landscape area (see exhibit 30.A). Additionally, where suitable, DM has begun opting for local species that have very low water requirements, as can be seen around the Qudra lake area (see exhibit 30.B). 227 TREES Hardscape elements will cover over 60% of the landscape area. This contributes to lower water consumption, while it fulfills beautification goals. Additionally, revised irrigation standards for water quantity are applied to the other 40% of the landscape. Solar panels will be used as a source of renewable energy for landscape lighting at night. GRASS 25-40% -34% -47% % % -20% -50% Grass Ground covers, Flowers and creepers Palm trees Al Khail Road landscape project, between Business Bay Bridge and Za abeel Interchange 1: Ornamental trees Liters/day Shrubs and hedges Al Qudra lake area: The selected trees in the area, e.g., Ziziphus Spina (Jujuba), are particularly suitable to the local climate and draught. These types of trees require liters/day compared to ornamental trees that require liters/day Liters/m2/day Original standards Exhibit 29: Revised irrigation standards for water quantity (2015) adopted in new developments Revised standards Exhibit 30: A. Example of hardscape measure adoption in new Dubai Municipality landscape projects B. Example of local specie adoption in public greenery 55

56 WATER REUSE AND EFFICIENT IRRIGATION Recipe for less water usage in irrigation: efficient and smart irrigation technology, local species, and hardscape elements PRIORITY AREAS 1 MAXIMISING THE POTENTIAL OF TREATED SEWAGE EFFLUENT WATER SUPPLY 2 MINIMIZING IRRIGATION CONSUMPTION IN LANDSCAPES Although potential savings from TSE measures could be massive, a few challenges need to be overcome to translate these savings into higher desalinated water savings. Availability of TSE per capita is expected to decrease as demand for desalinated water will reduce following the implementation of DSM measures, whereas irrigation needs are expected to increase in response to DM s 2030 greenery expansion plan. In fact, DM targets to increase green spaces as a percentage of total constructed areas in developed urban areas from 21% in 2011 to 25% by With the exception of a few months of summer when desalinated water consumption drops since many residents are out of the country, TSE supply exceeds demand. Imbalance in supply and demand also occurs during the same day, with insufficient supply in the morning and excess supply during the remainder of the day. For this reason, it is important to improve irrigation efficiency in DM and non-dm landscapes. This can be done by enforcing efficient irrigation technology, hardscape elements, and local specie adoption in new projects, as well as financing irrigation retrofits in existing landscapes. Given the current low price of TSE, there is a limited business case for DM to execute irrigation retrofits. However, benefits are much larger from the perspective of the entire emirate; TSE savings would displace equal quantities of desalinated water. To increase demand for TSE and optimise its usage, DM is working on expanding the network needs (e.g., towards DC plants), and at the same time, stabilising TSE supply. 3 ADOPTING AN INTEGRATED WATER RESOURCE MANAGEMENT APPROACH Addressing the above-mentioned challenges requires an integrated approach that looks at reducing demand for the variety of TSE uses and at maximising and stabilising supply. This is why DM is currently collaborating with the Dubai Supreme Council of Energy with endorsement from the Executive Council to develop a comprehensive strategy in the aim of achieving maximum overall cycle efficiency for all water uses in Dubai. 56

57 DSM PROGRAMME 6: PROGRAMME OWNER OUTDOOR LIGHTING PROGRAMME SCOPE Adopt high efficiency lighting in roads and other public spaces in Dubai, both in new installations and retrofits of existing assets. Implement efficiency measures such as dimming and partial switch-off. BASSEL SAAD Director of Roads and Facilities Maintenance Department, Roads and Transport Authority 57

58 OUTDOOR LIGHTING PROGRAMME SAVINGS 13(1) (1) 2015 Electricity Savings (GWh) PROGRAMME INTRODUCTION The effectiveness of LED (light-emitting diode) technology is proven by a number of extensive applications worldwide. The Roads and Transport Authority (RTA) and Dubai Municipality (DM) have also run pilot projects to assess its suitability in the environmental conditions of Dubai and the strict safety requirements of its roads. LED is now the technology of choice for new roads in Dubai, and a retrofit programme has been initiated, by both RTA and DM, to replace old lighting assets with LED or other high efficiency technologies. The programme targets 75% penetration of highly-efficient street lights in Dubai by OPERATIONAL DASHBOARD In the meantime, RTA has implemented measures to minimise the consumption of Dubai s existing conventional street lighting assets. In 2011, operating hours at dawn and sunset were reduced by a total of 20 minutes per day (10-10 initiative), and in 2013 a switch-off programme was implemented for every second light in designated residential areas (one-on one-off activation). Today, penetration of the switch-off measure has reached 100%. DM is also adopting switchoff measures in the public facilities they manage. (1) 2015 and 2016 savings were readjusted (in comparison to 2016 report) due to updated calculation by RTA and for the purpose of comparing them with savings 4% 9% 10% Penetration of efficient lights out of total RTA and DM lighting assets Legend: 100% 100% 100% Switch-off penetration in designated residential streets 58

59 OUTDOOR LIGHTING MAIN ACHIEVEMENTS 1 ENERGY EFFICIENT STREET LIGHTING PROJECTS IN DUBAI Hardscape measure adoption in upcoming Al Khail Road landscape project, between Business Bay Bridge and Za abeel Interchange 1: Hardscape elements will cover over 60% of the landscape area. This contributes to lower water consumption, while it fulfills beautification goals. Additionally, revised irrigation standards for water quantity are applied to the other 40% of the landscape. Initial LED installations have been successfully completed in new roads, for example in the residential streets of Barsha South 1 and 2, which have provided substantial energy savings and outstanding quality standards. Meanwhile, RTA has examined the feasibility of retrofitting its existing lighting stock and the application of LED to large roads. Today, LED lights represent 3% of RTA s total lighting assets. In, RTA completed the first pilot LED retrofit project with the replacement of 1,100 lights in the internal and collector roads of Al Rashidiya and Nad Shamma (see exhibit 31). As for LED application to main roads, lighting on the Sheikh Zayed Road Bridge over the Dubai Water Canal is an example of initial testing and shows benefits on multiple dimensions: energy efficiency, quality, community service, and landscape beautification. Solar panels will be used as a source of renewable energy for landscape lighting at night. Total LED Fittings: 1,105 pcs. 44 W: 439 pcs. 84 W: 666 pcs. Technology Conventional LED Annual Consumption (kwh) 683, ,332 Annual Energy Cost (AED) 259, ,666 Expected Annual Savings 349,865 (excluding switch off/ dimming) 132,949 Exhibit 31: Highlights of the LED retrofit pilot project in Al Rashidiya and Nad Shamma 59

60 OUTDOOR LIGHTING MAIN ACHIEVEMENTS 2 SMART DUBAI AND DEMAND SIDE MANAGEMENT OBJECTIVES ALIGNED IN STREET LIGHTING PROJECTS Connected streets are at the core of smart cities. Each light pole can be powered, connected, and located, and hence used to receive and send information across the city. Recognising the potential of street lighting assets beyond lighting and energy efficiency, RTA has aligned Smart Dubai with Demand Side Management (DSM) objectives in its efficient outdoor lighting programme. Smart applications will facilitate maintenance and operation of lighting assets (i.e., direct defect detection removes the need for patrolling), and help better serve the residents of Dubai by improving road safety and quality and by offering additional services through the lighting poles. Examples of potential services can be seen in the Dubai Water Canal boardwalk and footbridges, where street light poles provide pedestrians with WiFi, phone charging outlets and other interactive features. 3 ENERGY EFFICIENCY OUTDOOR LIGHTING PROGRAMME IN DUBAI MUNICIPALITY S PARKS AND PUBLIC FACILITIES DM is undergoing an energy efficiency transformation for outdoor lights in public parks and facilities. The transformation consists of 100% adoption of LED in new projects partly in combination with solar energy supply, progressive replacement of existing conventional lamps with LED, and reduction in operating hours (see exhibit 32). Since 2012, over 10,000 LED lights have been installed across Dubai parks; 4,000 in new projects and 6,000 through the retrofit of conventional lights. In addition, operating hours have been reduced to a maximum of 6 hours per night, with switch-off after 12 am. A. B. In addition, smart applications can further improve energy efficiency thanks to enhanced controls. Complementing LED with controlled dimming can increase energy savings from LED retrofits and new installations while contributing to a better perception of energy efficiency measures in comparison with the currently adopted one-on one-off initiative. Exhibit 32: D ubai Municipality outdoor lighting projects A. Al Khazzan Park, the first zero-energy park in Dubai B. Solar-LED lighting systems in Nad Al Sheba Park, Dubai 60

61 OUTDOOR LIGHTING DID YOU KNOW? 1 PRIORITY AREAS 1 EXPANDING RETROFIT PROJECTS IN ROADS RTA has developed a Smart and Efficient Outdoor Lighting Strategy defining a 15 year implementation roadmap for the installation of LED and other efficient lighting technologies in new roads, and more importantly in existing roads through retrofit projects. As per the strategy, the programme is expected to reduce electricity consumption of street lights in Dubai by 62%. RTA has also developed standards accompanying the roadmap to ensure road safety and quality while maintaining optimal efficiency. 2 HIGHER ENERGY EFFICIENCY 2 END USER BENIFITS OF SMART STREET LIGHTS 5 EXPANDING THE PROGRAMME TO FREE ZONES AND PRIVATE DEVELOPMENTS A priority for the next few years is to better understand the current situation and plans for efficient outdoor lighting in free zones and private developments, and enforce collaboration with free zone authorities and private developers in the aim of expanding DSM efforts in these areas. 6 LOWER MAINTANANCE COST 3 ADDITIONAL SERVICES FOR PEDESTRIANS THROUGH THE POLES (E.G. Wifi coverage across the city) 4 IMPROVED DRIVER EXPERIENCE THROUGH TRAFFIC AND PARKING MANAGEMENT IMPROVED RESIDENT SAFETY THROUGH PUBLIC CAMERAS BETTER WEATHER AND POLLUTION MONITORING 61

62 DSM PROGRAMME 7: PROGRAMME OWNER TARIFF RATES PROGRAMME SCOPE Adjust electricity and water tariff rates in Dubai to be cost-effective, ensure economic efficiency and align ratepayer with Demand Side Management (DSM) objectives. YOUSEF JEBRIL Executive Vice President, Power and Water Planning, Dubai Electricity and Water Authority Visit 62

63 TARIFF RATES PROGRAMME SAVINGS 1,293 1,188 1, Electricity Savings (GWh) 3, ,886 2, Water Savings (MIG) PROGRAMME INTRODUCTION Price signalling is a key driver to induce energy efficient behaviours from customers. The tariff currently in place is designed in an inclining slab structure, which moves consumers to a higher tariff slab as their consumption rises. The latest Dubai Electricity and Water Authority (DEWA) tariff review was in The increase in tariff resulted in 4% to 5% reduction in consumption of electricity and water, respectively, in the first two years of implementation, with decreasing impact over time. The Tariff Rates Programme kicked off the DSM Strategy 2030, being the major contributor to savings in the first years of strategy implementation. OPERATIONAL DASHBOARD 15-30% 15-30% 15-30% Price elasticity of demand 10-25% 10-25% 10-25% Annual elasticity degradation 550k 781K 200k Legend: Number of smart meters installed

64 TARIFF RATES 4.49% A. Electricity Demand (TWh) MAIN ACHIEVEMENTS AND PRIORITY AREAS % MAINTAINING THE IMPACT OF THE 2011 TARIFF REVIEW The electricity and water tariff structure is slab-based for all customer sectors, and higher consumption slabs correspond to higher tariffs. The 2011 tariff increase to the slab-based pricing has been effective in curving demand trends towards more sustainable patterns (see exhibit 33). Pricing is a signalling tool that is often used to induce energy efficient behaviours from customers and promote their collaboration is optimizing consumption. This ultimately results are avoided capital investments in new generation capacity and reduced consumption of fossil fuels by conventional generation units, on which Dubai s energy supply still depends strongly. The addition of a fuel surcharge component in the tariff structure, which varies based on the actual fuel cost supplied to DEWA s generation plants, allows for more transparency with consumers on drivers of price changes % B. Water Demand (BIG) % As any other price signal, the impact of the 2011 tariff review is diminishing over time (see exhibit 34). To sustain changes until the next tariff review, DEWA is investing significant resources in awareness initiatives, (e.g., Ideal Home, Neighbourhood, and Green Summer Campaigns targeted at the residential sector). 58 Water Electricity Exhibit 33: Electricity and water demand trends in Dubai, before and after the 2011 tariff review Total consumption is at end-user level and excludes power stations and desalination auxiliaries, as well as losses in the transmission and distribution networks Exhibit 34: Degradation of 2011 tariff review impact on electricity and water savings 64

65 TARIFF RATES 3 REDUCING THE PEAK LOAD In addition to overall consumption, another important factor affecting electricity generation infrastructure and cost is the electricity load profile, since peak demand defines generation capacity requirements and therefore capital expenditure. Through its combination of programmes, the DSM Strategy helps smooth down the load profile. For example, an increase in solar generation from Shams Dubai will support abatement of the day-time peak, while the Outdoor Lighting Programme and ESMA standards (e.g. for indoor lighting) can help reduce the evening-time peak. 9,000 8,000 MODERNISING THE GRID DEWA developed a Smart Grid Strategy for modernising the grid (see exhibit 36). By the end of, 48% of all DEWA meters were replaced by smart meters. Adopting smart meters allows the utility to monitor and supervise customers consumption and the quality of service provided through a system fully integrated with the Customer Happiness Department. Today, smart meters are used for remote meter reading and leakage detection, for monitoring generation and consumption from solar rooftop (PV) systems, and for identifying customers consumption profile and running data analytics. In the future, smart meters can be leveraged to raise consumer awareness and induce behavioural change for reduced consumption. 7, ,000 5,000 Advanced Metering Infrastructure for Electricity 4,000 3, ,000 2 Advanced Metering Infrastructure for Water 3 4 Asset Management Big Data Analytics 5 Distribution Automation 1,000 Time of day (h) Exhibit 35: Dubai peak day load profile, 2016 and 12:00 11:00 9:00 10:00 8:00 7:00 5:00 6:00 4:00 3:00 1:00 2:00 11:00 12:00 PM 9:00 10:00 8:00 7:00 6:00 4:00 5:00 2:00 3:00 0 1:00 AM Due to high variability of cooling load between the summer and winter seasons, the annual load swing is about 70%. The daily load profile in Dubai is characterised by three periods. During the summer, which is the high season, peak periods occur during the day and in the evening, while the valley period occurs late at night and in the early morning (see exhibit 35). Load (MW) 2 6 Information Technology Infrastructure 7 Security 8 Substation Automation 9 10 System Integration Telecommunication Exhibit 36: DEWA s Smart Grid Strategy with its ten programmes 65

66 DSM PROGRAMME 8: PROGRAMME OWNER SHAMS DUBAI PROGRAMME SCOPE Encourage building and household owners in Dubai to install solar photovoltaic (PV) systems on their rooftop and connect them to Dubai Electricity and Water (DEWA) grid; and as a result, reduce their electricity bills and total demand on the grid. WALEED SALMAN Executive Vice President, Business Development and Excellence, Dubai Electricity and Water Authority Visit 66

67 SHAMS DUBAI PROGRAMME SAVINGS Electricity Savings (GWh) PROGRAMME INTRODUCTION Shams Dubai supports the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to have a solar PV system on every rooftop in Dubai by Shams Dubai is the first comprehensive framework for solar rooftop in the GCC (Gulf Cooperation Council). It implements the Executive Council Resolution No. 46 of 2014 and is built on a netmetering scheme. It allows consumers to generate electricity for their needs, connect their PV systems to the grid, and offset any excess generation from their electricity bills. Under this scheme, solar production can address the majority of a building s electricity need in some cases. OPERATIONAL DASHBOARD Along with net-metering, connection conditions on solar installation, which limit the allowable installed capacity to the electrical load of a customer s land plot and the consumption of the generated electricity to within the plot where it is generated, are the regulatory elements shaping the growth of the market Cumulative connected solar rooftop capacity (MWp) In addition to the regulatory framework, DEWA has defined technical specifications for PV systems, an accreditation scheme for contractors and consultants, and a permitting and connection process, which institutionalise programme quality. Today, more than 50 contractors are enrolled in the Shams Dubai Programme. In parallel, towards the end of 2016, Etihad Energy Services (Etihad ES) launched Etihad Solar, a business unit focused on further stimulating the Solar Rooftop market Pipeline of solar rooftop projects (MWp) Legend:

68 SHAMS DUBAI MAIN ACHIEVEMENTS 1 PROJECTS OF REMARKABLE SIZE IN A RAPIDLY GROWING MARKET Solar Rooftop is a fast expanding market. In, the connected solar rooftop capacity has tripled. In fact, the year was characterised by the connection of a few very large projects, some of which were sponsored by DEWA while others by private customers (see exhibit 37). DEWA projects notably included the 3 MWp installation on 640 villas in Hatta and 1 MWp installation in Dubai World Trade Center (DWTC). As for solar rooftop projects in the private sector, an example is the 1.1 MWp installation by RSA Global with financing from SirajPower. The pipeline for 2018 is very promising. Additional solar rooftop capacity planned to be connected in 2018 is expected to be double the cumulative capacity so far connected. Studies conducted by leading industry players looking at sheer rooftop surface area where solar rooftop could be economically deployed, confirm the long-term growth potential of Shams Dubai. A. Government project: Hatta, largest residential solar rooftop project B. Private project: First solar rooftop project in Dubai South - - Capacity: 1.1 MWp that covers 90% of the electricity demand of the facility - Connection date: November - Location: RSA Global, Dubai Logistic City - Financed by: SirajPower through a 15 years lease agreement - Executed by: SirajPower Capacity: 3 MWp Connection date: January 2018 Location: 640 villas and 2 government buildings in Hatta Financed by: DEWA, as a corporate social responsibility project under Hatta s comprehensive development plan, which was launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai - Executed by: Etihad ES and three enrolled solar contractors, Al Mostajed Technologies, Alsa Solar Systems and Dubai Carbon Center of Excellence - Savings: 4.5 GWh/year Exhibit 37: Overview of large projects connected in It is important to understand the two business models in the market: direct ownership and third party ownership. In the direct ownership model, the customer buys and maintains ownership of the solar PV system; in the third party ownership model or solar leasing agreement, the customer pays a rental fee to a solar financing company (SFC) that installs a PV system on the customer s rooftop and remains the owner of the system during a lease agreement period (15 20 years). 68

69 SHAMS DUBAI 2 ENFORCED MARKET ENABLERS AND BUILDING CAPABILITIES 1 Locate the building and draw the area 2 Adjust the PV system parameters (7 available) DEWA has worked on a number of initiatives in to promote Shams Dubai. Firstly, DEWA streamlined the end-to-end permitting and connection process. The process is now fully automated; submission of documents for No Objection Certificate and design approval, placement of requests for inspection, and payment of connection charges can be made online. In parallel to process automation, the building capabilities of local market players (utility, developers, and contractors) has contributed to a shorter lead time for permitting and connection. In addition, DEWA has developed an online calculator accessible to the general public that enables customers to get a preliminary estimate of their generation potential (see exhibit 38). Increasing awareness levels on the benefits of solar rooftop and the available options in the market, as well as empowering customers to make educated decisions, are key to the success of the programme. 4 Connect to the list of enrolled contractor for a better estimate 3 View the generation potential Link to calculator: Exhibit 38: Functionalities of the Shams Dubai Calculator developed by Dubai Electricity and Water Authority 69

70 SHAMS DUBAI PRIORITY AREAS 1 GOVERNING BY EXAMPLE Dubai government prides itself in governing by example, a principle that has been applied to the implementation of several Demand Side Management programmes, previously programme one, and lately programmes two and four. As for Shams Dubai, DEWA has been driving the programme through large solar rooftop projects. In fact, in addition to the already connected project, DEWA has announced a 60 MWp solar PV installation on over ten of its water reservoirs. There has also been a number of installations on other government entity buildings. That being said, continuous contribution by all government entities through the solar transformation of their facilities will help strengthen the solar rooftop market in Dubai. 2 SUPPORTING COMMERCIAL AND INDUSTRIAL PROJECTS Another programme priority is to support private commercial and industrial businesses, which, beyond government sponsored projects, are a driving force for solar rooftop adoption owing to their high solar generation potential (installations > 500kWp). Since capital required to own a PV system is high and would require diverting funds from core business investment opportunities, the leasing agreement model is attractive to private sector customers. The business case for customers in solar leasing agreements is directly proportional to the rental fee offered by the SFC in the agreement; the lower the rental fee, the higher the saving versus the DEWA tariff alternatively paid (which in the case of high consuming businesses is the highest customer slab for commercial and industrial customers). Hence, solar rooftop adoption in the private sector can be accelerated if the saving versus the DEWA tariff is noteworthy. 3 CREATING A BUSINESS CASE FOR THE RESIDENTIAL AND SME SECTORS Today, residential and SME sectors suffer from a low business case and a lack of third party funding in the form of micro-project financing. An action item for the coming years is to streamline the business model and develop mechanisms to enhance the business case for these sectors, i.e., reduce the cost per kilowatt peak of small scale installations (< 50 kwp). An example of potential mechanisms was adopted in Hatta, where small scale solar PV systems (5 kwp) for 640 villas were purchased in bulk, thus reducing the overall cost of the micro-installations. To increase this saving, the key cost to address is the cost to finance the project, and this can be done by reducing the cash flow risks associated with a project, i.e., risk of default on payment or risk of a customer abandoning the building during the agreement period. Saving versus the DEWA tariff offered by private SFCs has increased from as low as 10% to as high as 30% by end of, as a result of financial engineering and well drafted contracts. However, legal agreements still experience significant scrutiny by customers, extending the project sales cycle. 70

71 SPECIAL PROJECT 1: DSM ENERGY INTENSITY MAPPING PROJECT INTRODUCTION AND OBJECTIVES Energy Intensity Mapping is a platform launched by the DSCE to allow the DSM programme manager to monitor electricity and water consumption of buildings across Dubai and channel that information through to the different DSM programme owners or other stakeholders to enable policy making, implementation support and awareness improvement across Dubai and for all building typologies. The mapping platform displays energy use intensity, which is the annual energy consumption per unit area (kwh/m2 or IG/m2), and hence provides a normalised energy consumption index for each building. As energy consumption per account is frequently updated, the platform outlines (to a relatively high definition) consumption patterns of different building typologies. It can help target high energy consumers, whether on a consumer segment, community, or building level, and can help determine the applicability and feasibility of energy conservation measures e.g., energy retrofit projects, awareness programmes, solar rooftop installations, district cooling (DC) connections, and efficient irrigation measures. Ultimately, the tool can guide policy design to attain Demand Side Management (DSM) targets. 71

72 DSM ENERGY INTENSITY MAPPING OVERVIEW OF THE PLATFORM The platform allows a bird s-eye view of Dubai, showing buildings or communities in different colours depending on their energy use intensity. Zooming out displays, on a macro level, the energy intensity of Dubai s communities, and zooming in displays, on a micro level, buildings with their energy use intensity (see exhibit 39). In addition, the mapping platform allows to filter buildings with installed solar photovoltaic (PV) system, those compliant with Dubai Green Building Regulations and Specifications (DGBRS) 2010, those connected to district cooling, or those that have been retrofitted. PROJECT ACHIEVEMENTS AND PRIORITY AREAS TAQATI has uploaded consumption and building area data for 5,000 buildings; which constitute the first phase of the programme. The second phase of the project consists of extracting value from the existing platform and data and, at the same time, uploading data for 50,000 buildings. When this phase is complete, the programme will be ready to be used for monitoring progress of the different DSM programmes (e.g., Building Retrofits, District Cooling) and their impact on energy intensity at the city level. This scale up will require software upgrades and database expansion to allow for the automated ingestion of data. Exhibit 39: D SM Energy Intensity Mapping platform A. A macro view showing average energy intensity of different communities in Dubai (Red: high intensity, dark green: moderate intensity and light: green low intensity) B. A micro view showing energy intensity of multiple buildings in one community 72

73 SPECIAL PROJECT 2: GREEN PUBLIC PROCUREMENT FOR ENERGY AND WATER EFFICIENCY PROJECT INTRODUCTION AND OBJECTIVES Green procurement is a practise followed in organisations to procure at competitive prices products and services with reduced environmental impact: lower carbon emissions owing to their electricity and water efficiency, lower waste generation, and lower toxic emissions. The Dubai Supreme Council of Energy (DSCE) has issued in November 2015, in line with Demand Side Management (DSM) strategy, guidelines for the implementation of the Green Public Procurement for Energy and Water Efficiency (GPPEWE) initiative for the implementation of green procurement practises within Dubai Government with a specific focus on electricity and water efficiency. The primary focus of the guidelines is to reduce direct electricity and water consumption, and the secondary focus is to reduce indirect consumption and emissions (upstream and downstream) of the product or service purchased, in line with the Greenhouse Gas Protocol (GHGP). The guidelines outline the scope, governance, and roadmap for implementing GPPEWE within the procurement processes of government entities. 73

74 GREEN PUBLIC PROCUREMENT FOR ENERGY AND WATER EFFICIENCY MAIN ACHIEVEMENTS AND PRIORITY AREAS There has been some considerable progress since the issuance of the directive. Governance: A green procurement committee was formed and meets when required, green procurement officers were assigned across entities, and Dubai Electricity and Water Authority (DEWA) was appointed as the green procurement champion. GPPEWE scope: A baseline study was carried out to identify product categories with the highest electricity and water saving potential (largest share of energy consumption and purchase value) and the penetration of green purchases among these products. As a result of the study, GPPEWE penetration targets were set for the prioritised product categories. GPPEWE criteria: GPPEWE criteria are designed to be included in tender documents to ensure that products supplied comply with energy efficiency, toxic emission, and waste generation requirements. Through a collaborative effort between DSCE member entities and the support of DEWA and TAQATI, GPPEWE criteria were developed for the indoor lighting, electric motor, unit air conditioning equipment, IT equipment, refrigerating appliances, indoor water fixtures and outdoor irrigation equipment. GPPEWE application: In, the pilot application of the criteria for indoor lighting was successfully carried out by DSCE member entities. The next step is to test the application of the green criteria developed f or other product categories. As per the roadmap defined in the guideline, once the green criteria are successfully tested in DSCE member entities, they will be rolled out to other government entities. Exhibit 40: Guidelines for the implementation of Green Public Procurement for Energy and Water Efficiency in Dubai, general criteria and criteria for indoor lighting Link to publication: 74

75 DSM AWARENESS IMPROVEMENT Awareness improvement is a key enabler to the achievement of the Demand Side Management (DSM) targets. Behavioural changes can only happen when people and organisations are aware of their energy consumption and of measures and practises they can adopt to reduce their consumption. 75

76 DSM AWARENESS IMPROVEMENT MAIN ACHIEVEMENTS 1 DEVELOPMENT OF THE DSM INTEGRATED AWARENESS STRATEGY 2022 GENERAL AWARENESS STRATEGIC OBJECTIVES Do you know about...? With the objective of ensuring integration of efforts and eliminating duplications, the DSM Integrated Awareness Strategy (IAS) 2022 was developed as a joint and collaborative effort between all DSM programme owners under the guidance and direction of a dedicated committee, the DSM Integrated Outreach and Awareness Committee (IOAC) and led by TAQATI. The committee was established in November 2016 and is chaired by the Dubai Supreme Council of Energy and vice chaired by TAQATI. It includes members from all the DSM programme owner entities, namely Dubai Electricity and Water Authority (DEWA), Dubai Municipality (DM), the Roads and Transport Authority, the Regulatory and Supervisory Bureau for Water and Electricity in Dubai (RSB), Etihad Energy Services Company (Etihad ES), and Emirates Authority for Standardization and Metrology (EMSA). The strategy covers all DSM programmes; it defines strategic objectives and measurable annual targets for each programme (from 2018 to 2022), with a focus on general awareness and willingness across key target segments (see exhibit 41). BENEFITS 1 Raise awareness of specific DSM programs and related initiatives 2 Increase willingness among target segments to implement DSM measures promoted by the program Do you know the benefits of...? SCOPE OF IAS SUPPORT & ASSISTANCE Do you know how to...? WILLINGNESS Do you want to...? Feedback DEPENDENT ON MULTIPLE ENABLERS (not only awareness) ACTION Did you do it? Exhibit 41: Illustrative strategic objectives of the Integrated Awareness Strategy

77 DSM AWARENESS IMPROVEMENT The strategy is implemented through the deployment of initiatives across five categories (see exhibit 42). 2 EXECUTION OF SECTOR-SPECIFIC AWARENESS INITIATIVES Category Main Sub-categories (non-exhaustive) Residential: Home Energy Advice Programme Networking Events and Activities C onferences Workshops Webinars Awards and Recognition Awards and recognition The Home Energy Advice Programme aims at tackling residential consumption by providing residential consumers with tailored advice on how to reduce energy consumption in their homes. Technical Resources S ector-specific guidebooks Tools and calculators Training material Marketing and Outreach Public Awareness Campaign D igital media (social media, websites) Traditional media (print, TV) pps A In-store promotions Interactive displays Brochures, leaflets and banners Exhibit 42: Integrated Awareness Strategy 2022 awareness initiative categories A policy statement for the DSM IAS 2022 implementation was signed by the IOAC members on behalf of the DSM programme owners, highlighting their commitment to jointly execute the strategy and its targets. In addition, operational plans for 2018 have been developed for all DSM programmes to effectively implement IAS 2022, and implementation support was assigned to TAQATI to ensure annual awareness targets are met by each programme owner. In, a pilot was conducted by TAQATI as part of DEWA s Ideal Home campaign. The pilot included visits to 60 homes in Dubai. Information on the energy efficiency of appliances used and usage behaviour was collected during the visits. Basic technical tests, such as water flow testing for indoor water fixtures, were also conducted. Following the visits, personalised home energy conservation reports were shared with the home owners. The reports highlighted potential electricity and water savings that can be attained if a set of customised energy conservation measures or tips included in the report are applied (see exhibit 43). The Home Energy Advice Programme is the first of its kind in the UAE and has received positive feedback from home owners showing their interest in learning more about energy efficiency home improvements and willingness to conserve energy and generate savings on their utility bills. Exhibit 43: E xtract of the personalised home energy conservation report 77

78 DSM AWARENESS IMPROVEMENT Education: Energy Efficiency Guidebook for Educational Institutions Industrial: Energy Efficient Industries Panel and Green Industries Award Scheme Hospitality: Dubai Green Hotel Innovation Conference As part of the School Conservation Award, TAQATI supported DEWA in developing the Energy Efficiency Guidebook for Educational Institutions (see exhibit 44), a comprehensive guidebook that provides step-by-step guidance on the basics needed for an educational institution to develop a constructive energy conservation plan and achieve noticeable savings on electricity and water consumption. The industrial sector has witnessed strong growth over the last decade; it is currently the third largest contributor to Dubai s GDP (gross domestic product) and accounts for 30% of greenhouse gas emissions in Dubai. With the Dubai Industrial Strategy, the sector is expected to continue its growth path, making it a key contributor to energy consumption. Dubai is investing heavily in the hotel sector with 300 hotels in the pipeline to open before 2020, adding to approximately 700 hotels currently operating in Dubai. In addition, with plans to host 20 million tourists a year by 2020, it is becoming increasingly important to ensure hotels are operating efficiently and sustainably. As part of the Future Manufacturing and Trade Summit held on November, TAQATI organised the panel for Energy Efficient Industries in Dubai alongside DEWA, Etihad ES, and Dubai Exports. The panel shed light on retrofitting and solar rooftop as energy efficiency measures relevant to the industrial sector and presented success stories. In addition, the panel introduced the upcoming Green Industries Award Scheme. The award scheme is led by Dubai Exports in collaboration with Etihad ES and TAQATI as technical partners, and aims at encouraging industrial facilities to implement energy efficiency measures. The first cycle of the award scheme is planned for The DSM Strategy was included as a key feature in the Dubai Green Hotel Innovation conference of, with DM, Etihad ES and TAQATI as key supporting partners. The conference included presentations and panel discussions to support hotels in understanding and adopting energy efficiency practises and solutions, namely Demand Side Management Applications for Hotels by TAQATI, building regulations and Al Sa fat by DM, and building retrofits by Etihad ES. Exhibit 44: E nergy Efficiency Guidebook for Educational Institutions Link to guidebook: sustainability/awards-and-campaigns/downloadable-materials 78